Big factories dominate India's manufacturing output, Annual Survey of Industries shows

India's manufacturing sector is dominated by a limited number of large factories, according to a recent government survey. Plants with annual output exceeding ₹500 crore generated over three-fifths of the total value added in the fiscal year 2025, constituting 62.07% of manufacturing output and nearly 61% of net value added. These factories, accounting for just 3.6% of the country's operational plant capacity, also employed about a third of the total workforce in the sector.

In contrast, smaller factories with annual output below ₹10 crore, representing 52.36% of operational units, contributed only 1.92% of total output and 2.12% of net value added. The concentration is even more pronounced when factories are classified by capital size. Units with plant and machinery valued at ₹10 crore or more accounted for 15.84% of operational factories but generated 76.82% of total output and 78.07% of net value added.

They also employed 87.42% of the workforce and utilized 59.66% of the total fixed capital in the manufacturing sector.

The manufacturing corporate sector, comprising more than 89% of total manufacturing gross value added (GVA), saw a 9.28% year-on-year increase in GVA in FY25. The gross value of plant and machinery in the registered manufacturing sector rose by 7.25%, while net value added per factory in operation increased by 6.59%. However, this growth in value creation did not lead to commensurate gains in per-worker value addition.

GVA per person engaged grew by 2.25%, despite the manufacturing corporate sector adding 7.57% more workers. The number of factories in operation in this segment also increased by 3.45%. Employment remains concentrated in a few industries.